Business Plan

Problems to establish this product in the market:

High Prices of Coffee is charged by the Foreign

based companies like Starbucks, Costa Coffee.

It is costly for people with low income to enjoy

coffee in Café.

This shops only attract Rich High class peoples.

Solution

To launch the New Brand of Coffee for common

people with low income group with same range of

products with lesser prices.

KB’s Café is an for all People from

lower Income group to Higher

Income Group.

KB’s Café Offer large variety of

product at minimum cost.

The Market Analysis

•Coffee is the drink of choice for many people across the world. Every morning

millions of people rely on their morning fix to get going for the day.

•According to USDA, consumption in India has been hovering around 1.2 million

bags for last 5 years.

•In India the trend is increasing and more and more urban and semi-urban

population is switching to coffee over tea.

•Growth rate of market is around 20% annually and is expected to remain in

double digit till next decade.

Customers

•My target market will be to anyone who enjoys coffee, but will mainly target

people age 15 and older, both male and Female, who are students and of working

class.

Products

Espresso Drinks

•Americano

•Breve

•Cappuccino

•Latte

•Mocha

•Macchiato

Coffees

•Daily Brew-Reg./Decaf.

•Organic French Roast

•World Tour Blend

Smoothies

•Fruit

•Blended Ice Coffee

Drinks

Bakery

•Croissants

•Bagels

•Pie and Cakes by the slice

•Muffins

•Cinnamon Rolls

•Breakfast Sandwiches

•Scones

Other Drinks

•Hot Chocolate

•Hot Tea

•Chai Tea Latte •Kid’s Hot Cocoa

•Fountain Drinks

•Juice

White and Chocolate Milk

Sales

As the product and the brand is new in the market and as there is huge

competition in the market from current market players like CCD, Barista

etc.

My sales strategy will be to sell my coffee products in lower cost

compared to competitors. This is simply to penetrate the market. And sell

as much as coffees and create the brand awareness among the customers

Marketing

Competitors

Revenue Model

Start Up Cost

Yearly Rent = Rs. 240000/-

Modernize Cost = Rs. 300000/-

Furniture Cost = Rs. 100000/-

Equipment Cost = Rs. 200000/

Supplies Fees = Rs. 540000/-

Electricity and Water Bill = Rs. 100000/-

Advertisement Expenses = Rs. 1000000/-

Total Start up Cost Rs. = Rs. 2480000/-

Monthly Operating Cost

Rs. 8000/- per month for Electricity, fuel and water expenses

Rs. 20000/- Rent per month of the Shop

Rs. 45000/- Supply Cost

Rs. 83333/- Advertisement Cost

Rs. 60000/- Employee Salary

Estimate Operating Cost per Month of Rs. 216333/-

Price and Revenue

Coffee : Rs 50 to Rs. 150 (Depends on flavor)

Bakery Products : Rs. 60 to Rs. 300

Smoothies : Rs. 45 to Rs. 350 (Depends on flavor)

Ice Drink and other drink : Rs. 40 to Rs. 200

Estimated Sale per month

Coffee: 200

Bakery Products: 75

Smoothies: 60

Ice Drink and other Drinks: 100

Day Revenue

Coffee = 100*115 = 11500

Bakery Products = 50*200 = 10000

Smoothies = 25*250 = 6250

Ice Drink and other drinks = 25*150 = 3750

Total Day Revenue = (11500+10000+6250+3750 = Rs. 31500)

Monthly Revenue = 31500*30= Rs. 945000/-

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Government Taxes

Service Tax: 12.36% on 1567500 = Rs. 193743/-

Total Monthly Tax Expenses = Rs. 193743/-

MONTHLY PROFIT

= Total Revenue – (Total Cost + Taxes)

= 945000– (216333+193743)

=945000 – 410076

= Rs. 534924/-

Funds Borrowed

Rs. 480000/- is self Invested amount .

Borrowed Loan of Rs. 2000000/- from Bank of Baroda @ 12.25%

For 60 Months

EMI per month is Rs. 52379.0

Pay for the Loan

Monthly payment is Rs. 52379.0 /-

Monthly Profit is Rs. 534924/-

Net Profit After Payment of Monthly EMI = 534924 – 52379

= Rs. 482545/-